Japan-Mexico

Japan and Mexico signed a bilateral free trade agreement in September 2004. It took effect in April 2005.

Japan initiated this deal because it felt disadvantaged in the Mexican market against both the US (because of NAFTA) and Europe (because of the EU-Mexico bilateral trade deal, which was also spurred by NAFTA).

last update: May 2012

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Japan’s second free-trade agreement, the one with Mexico that is approaching its first anniversary, has been a big success with a 30 percent jump in bilateral trade, Mexican Ambassador Miguel Ruiz-Cabanas said Wednesday.

The agreement deserves particular attention in the U.S., not only because it offers insights into future Japanese FTAs, but also because of its long-range implications for integration of North American and Japanese markets.

The failure of bilateral trade talks between Mexico and Japan on October 16 has shocked both sides, particularly Japan. The talks foundered on the question of what to do about Japan’s farmers, among the most highly subsidized in the world and the power base of the ruling Liberal Democratic Party.

Japan and Mexico have reached a basic accord on free trade. Japan promises to increase imports of pork, oranges and other agricultural products from Mexico, while that country says it will import more steel, automobiles and other industrial products from Japan.

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